Conclusion of preliminary study: energy suppliers incur extra costs for customers with solar panels, ACM to launch a follow-up study
Households with solar panels generate higher costs for suppliers than do households without solar panels. This has been revealed by an exploratory study of the Netherlands Authority for Consumers and Markets (ACM). ACM has carried out this study because ACM’s Monitor on the consumer energy market has shown that, when offering contracts, more and more suppliers distinguish between customers with and without solar panels. It is not prohibited for suppliers to distinguish between customers with and without solar panels.
As part of the study, ACM requested information from suppliers, and, on the basis thereof, made a rough estimate of the extra costs. This revealed that, for an average customer, depending on their specific situation, suppliers can incur up to several hundreds of euros in extra costs. The extra costs are the result of higher purchasing costs, higher imbalance costs, and costs that are associated with the net metering scheme. This is further explained in the exploratory study ‘Extra costs for energy suppliers associated with customers with solar panels’, which has been published on ACM’s website.
Next to the information that was requested from suppliers, ACM carried out its own study, and held conversations with the trade association of the Dutch energy industry Energie-Nederland, Dutch homeowners association Vereniging Eigen Huis, transmission system operator for electricity TenneT, the Royal Netherlands Meteorological Institute (KNMI), the Netherlands Environmental Assessment Agency (PBL), and the Dutch Association for Renewable Energy (NVDE).
Follow-up study into actual costs
The exploratory study contains a rough estimate of the extra costs that suppliers incur. As ACM wishes to get a better understanding of the actual costs and how suppliers included these in their tariffs, ACM has launched a follow-up study into Budget Energie, Eneco, Engie, and Vattenfall. ACM did not select these four suppliers because there is a suspicion that they charge unreasonable tariffs, but because they are four major suppliers that, each in their own way, distinguish between customers with and without solar panels. ACM expects to publish the results of this follow-up study in the first half of April.
More and more distinction between customers with and without solar panels
ACM’s Monitor on the consumer energy market shows that suppliers distinguish between customers with and without solar panels in various ways. With three suppliers, customers with solar panels pay a higher tariff per kWh of electricity, and with two suppliers, they pay a higher tariff per m3 of natural gas. With 3 other suppliers, the standing charge is higher for customers with solar panels. Seven suppliers have households with solar panels pay an extra surcharge. The amount of this surcharge depends on the amount of energy that is fed into the grid.
Several suppliers also choose not to offer (multi-year) fixed contracts to households with solar panels. There are 18 suppliers that offer multi-year fixed contracts. Households with solar panels can take out contracts with seven of these 18 suppliers. On average, these contracts are 5% more expensive than fixed contracts that are only offered to customers without solar panels.
Suppliers are allowed to distinguish between customers with and without solar panels. Since more and more suppliers do this in different ways, the range of contracts becomes more diverse. This leads to more choice, but it also makes it more difficult for customers to compare. ACM has previously already argued with the legislature about taking measures to improve the comparability of contracts (in Dutch).
Warning against HEM’s high tariffs
According to the Monitor on the consumer energy market, the tariffs for new contracts have gone down further. It has also been revealed that energy company Hollandse Energie Maatschappij (HEM) charges exceptionally high tariffs for energy contracts that are offered through telemarketing calls. These fixed contracts of HEM are almost 25% more expensive than the average price of other suppliers.